Next time they'll get bored with that technique and they'll run it at 6k rpm, the block will split and the flywheel will go "somewhere"....

That looks to be a mid-80s vintage Vette... its an old TPI motor, not an LT1.

This cash for clunkers is just like the $8k first-time-homebuyer credit. It's a quick way to get some money changing hands and people doing business. If the rest of the economy (job creation through the private sector primarily) doesn't catch up, then this is all just a flash in the pan.